Allocative inefficiency implies that:
A) goods are produced at too high at cost.
B) the people who want a specific good the most cannot get it, while others can.
C) too many Twinkies and too few Ding Dongs were produced.
D) workers are lazy.

Question

Quizplus · Accepted Answer

Allocative inefficiency occurs when resources are not distributed in a way that maximizes consumer satisfaction, meaning that those who value a good the most may not be able to obtain it.

Allocative Inefficiency Implies That